Santa Clara approves 49ers stadium deal; fate in NFL's hands

Artist rendering of the proposed 49ers stadium in Santa Clara. The plan
would include extra-wide plazas and concourses, solar panels and a "green roof" made of living plants, and one of the largest lower-seating bowls in the NFL. Courtesy of San Francisco 49ers.

Santa Clara leaders on Tuesday enthusiastically endorsed the deal to fund and build a new 49ers stadium, leaving one final obstacle before pro football comes charging into the South Bay: a huge cash infusion from the NFL.

City Council members, acting as the Santa Clara Stadium Authority, unanimously voted to tap $850 million in bank loans to begin construction within the next year, as dozens of supporters -- including business groups, unions and fans in 49ers jerseys -- wildly applauded.

"I look forward to getting this game started," Councilwoman Lisa Gillmor said at the meeting packed with more than 100 people, with only a few voicing disapproval.

Despite the elation from the team, city officials and other supporters, the deal isn't done just yet: Goldman Sachs, Bank of America and U.S. Bank won't agree to the loan until the NFL commits to finance at least $150 million to pay for the rest of the $1 billion stadium.

The NFL owners are meeting Wednesday and will receive a briefing on the 49ers stadium but no vote is scheduled. Although the NFL is widely expected to help pay for the project, the question is when -- with the answer dictating how soon construction can start.

The 49ers are competing for the funds with several teams, including the Minnesota Vikings, San Diego Chargers and the developers of a proposed stadium in Los Angeles. The amount the team needs would tie an NFL record for stadium financing.

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But the 49ers are confident that they will get the league funds then complete the loan deal by the end of April. Team officials say they may have more insight into the specifics of a league contribution after Wednesday's owners meeting.

In another sign of confidence, a newly released letter from the banks shows the 49ers are targeting a 2014 stadium opening -- a year earlier than planned -- and will try to break their lease at Candlestick Park after 2013. The team said Tuesday it has begun talking with San Francisco officials but still faces "a lot of logistical and contractual challenges."

Tuesday night's vote -- capping virtually five years of long planning meetings -- carried little drama since city executives already had spent more than two years negotiating the deal with team officials. The City Council is also stacked with die-hard stadium supporters.

"It has been a long courtship (between the team and city) for the last five years. This represents our vows," Councilwoman Patricia Mahan said.

The stadium authority -- the separate city agency designed to safeguard the general budget -- will be responsible for paying back the $850 million advance plus interest, the largest loan ever for any public agency building an NFL stadium. Officials hope to repay it using income from the stadium, including ticket sales and naming rights, along with city redevelopment agency funds and a local hotel tax. But the team has pledged to make up the difference if those revenues fall short.

Some residents were concerned, nonetheless, with the huge debt saddling the city agency.

"This is not what Santa Clarans voted for," said resident Nancy Lang. "Our children and grandchildren will be burdened with this massive debt."